Question: The following information was available for the

> Circle-Square Ltd. is in the process of liquidating and going out of business. The firm’s balance sheet shows $50,000 in cash, accounts receivable of $240,000, inventory totaling $110,000, plant and equipment of $500,000, and total liabilities of $620,00

> Selected balance sheet accounts for Tibbetts Company on September 30, 2022, are as follows: Required: a. Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30, 2022. b. Summarized here are the transacti

> During the year, cost of goods sold was $120,000; income from operations was $114,000; income tax expense was $24,000; interest expense was $18,000; and selling, general, and administrative expenses were $66,000. Required: Calculate net sales, gross prof

> During the year, net sales were $400,000; gross profit was $160,000; net income was $60,000; income tax expense was $15,000; and selling, general, and administrative expenses were $73,000. Required: Calculate cost of goods sold, income from operations, i

> Use the information presented for Lakeside Inc. Required: Calculate the payback period and the accounting rate of return for the new production equipment.

> DeBauge Realtors Inc. is a realty firm owned by Jeff and Kristi DeBauge. The DeBauge family owns 100% of the corporation’s stock. The following summarized data (in thousands) are taken from the December 31, 2022, financial statements: A

> Use the information presented for Lakeside Inc. and your calculation of the net present value of the new production equipment. Required: Calculate the present value ratio of the new production equipment, and comment on the internal rate of return of this

> Lakeside Inc. is considering replacing old production equipment with state-of-the-art technology that will allow production cost savings of $7,500 per month. The new equipment will have a five-year life and cost $320,000, with an estimated salvage value

> Lakeside Inc. produces Product A and Product B that require special machining time. Machine time capacity is 10,000 machine hours per month. Lakeside estimates April demand for each product and provides additional information as follows: Required: Determ

> Lakeside Inc. is considering whether to enter the market to produce and sell Product X. The market selling price for Product X is well established at $300 per unit, and Lakeside requires a profit margin of 25% on product lines. Required: Calculate the ta

> In addition to the product cost information for Lakeside Inc., product engineering has determined that a certain part of the product conversion process could be outsourced. Raw material costs would not be affected, but direct labor and variable overhead

> In addition to the product cost information for Lakeside Inc. in Mini-Exercise 16.1, Lakeside has received an offer from a nonprofit organization to buy 6,000 units at $56 per unit. Lakeside currently has unused production capacity. Required: Should Lake

> Lakeside Inc. produces a product that currently sells for $72 per unit. Current production costs per unit include direct materials, $20; direct labor, $24; variable overhead, $10; and fixed overhead, $10. Product engineering has determined that certain p

> ABC Company operates two divisions with the following operating information for the month of May: Division 1: sales, $240,000; operating income, $72,000; operating assets, $600,000. Division 2: sales, $160,000; operating income, $80,000; operating assets

> ABC Company operates two divisions with the following sales and expense information for the month of May: Division 1: sales, $240,000; contribution margin ratio, 50%; direct fixed expenses, $48,000. Division 2: sales, $160,000; contribution margin ratio,

> In addition to the information for Acme Company, the standard fixed overhead application rate per unit consists of $2 per machine hour and each unit is allowed a standard of 1 hour of machine time. Required: Calculate the fixed overhead budget variance a

> Form a group of three or four students to research, evaluate, and report on software solutions available to support the budgeting needs of an organization. Choose three planning/budgeting products from the following list of company websites, and review t

> Refer to the corporate governance disclosures provided on Campbell Soup Company’s website. Visit campbellsoupcompany.com; select the “Investors” shortcut from the “About Us” menu, then click on “Governance Documents” from the “Governance” drop down menu.

> In addition to the information for Acme Company, the standard variable overhead rate per unit consists of $6 per machine hour and each unit is allowed a standard of 1 hour of machine time. During August, $115,940 of actual variable overhead cost was incu

> In addition to the information for Acme Company, the standard direct labor cost per unit consists of 0.5 hour of labor time at $20 per hour. During August, $160,650 of actual labor cost was incurred for 7,650 direct labor hours. Required: Calculate the l

> In addition to the information for Acme Company in Mini-Exercises 15.1 and 15.2, the standard direct material cost per unit consists of 10 pounds of raw material at $0.80 per pound. During August, 187,000 pounds of raw material were used that were purcha

> In addition to the information for Acme Company in Mini-Exercise 15.1, actual unit component costs incurred during August include direct materials, $8.25; direct labor, $9.45; variable overhead, $6.82. Actual fixed overhead was $33,500. Required: Prepare

> Acme Company’s production budget for August is 17,500 units and includes the following component unit costs: direct materials, $8; direct labor, $10; variable overhead, $6. Budgeted fixed overhead is $35,000. Actual production in August was 17,000 units.

> In addition to the information presented in Mini-Exercises 14.2 and 14.3, ABC Company currently pays a standard rate of $2 per pound for raw materials. Each unit should be produced in 15 minutes of direct labor time at a standard direct labor rate of $16

> ABC Company has a cash balance of $22,000 on August 1 and requires a minimum ending cash balance of $20,000. Cash receipts from sales budgeted for August are $306,180. Cash disbursements budgeted for August include inventory purchases, $40,000; other man

> ABC Company’s raw materials purchases for June, July, and August are budgeted at $35,000, $25,000, and $50,000, respectively. Based on past experience, ABC expects that 60% of a month’s raw material purchases will be paid in the month of purchase and 40%

> In addition to the information, the selling price for each unit is $21. Based on past experience, ABC expects that 35% of a month’s sales will be collected in the month of sale, 53% in the following month, and 10% in the second month following the sale.

> In addition to the information presented in Mini-Exercise 14.2, the following cost behavior patterns are budgeted for ABC Company’s operating expenses each month are Fixed costs: salaries, $2,000; rent, $5,000; depreciation, $2,400; advertising, $3,200 M

> Prepare a personal balance sheet and projected income statement; explain financial statement relationships. Required: a. Prepare a personal balance sheet for yourself as of today. Work at identifying your assets and liabilities; use rough estimates for a

> In addition to the information, each unit that ABC Company produces uses four pounds of raw material. ABC requires 20% of the next month’s budgeted production as raw material inventory each month. Required: Calculate the number of pounds of raw material

> ABC Company’s budgeted sales for June, July, and August are 12,000, 16,000, and 14,000 units, respectively. ABC requires 30% of the next month’s budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May

> ABC Company’s actual unit sales in the current year for January, February, and March were 20,000, 17,000, and 23,000 units, respectively. Current year selling price is $20. An analysis of general economic trends and specific initiatives at ABC forecasts

> Brooklyn Cycles produces custom bicycles and has used a traditional manufacturing overhead application rate based on direct labor hours. Currently, overhead is applied at the rate of $42/DLH. Brooklyn is now considering using activity-based driver rates

> The following cost behavior pattern describes anticipated manufacturing overhead costs for 2022: $240,000 + $8/unit. During the year, 30,000 units were produced and 28,000 units were sold. Required: Calculate the manufacturing overhead unit cost for 2022

> The following cost behavior patterns describe anticipated manufacturing costs for 2022: raw material, $7/unit; direct labor, $10/unit; and manufacturing overhead, $240,000 + $8/unit. Required: If anticipated production for 2022 is 30,000 units, calculate

> The following information is from ABC Company’s general ledger for the month of September: Beginning and ending finished goods inventory, respectively, were 168,000 and 156,000. Cost of goods sold for September was $408,000. Required: How much was ABC Co

> The following information is from ABC Company’s general ledger: Beginning and ending inventories, respectively, for raw materials were $12,000 and $15,000 and for work in process were $30,000 and $33,000. Raw material purchases and direct labor costs inc

> Coronado Company applies manufacturing overhead to production at the rate of $8 per direct labor hour and ended March with $24,000 underapplied overhead. Actual manufacturing overhead incurred for March amounted to $176,000. Required: How many direct lab

> Bentley estimates manufacturing overhead of $1,200,000 for 2022 and will apply overhead to units produced based on 400,000 machine hours. During 2022, Bentley used $1,280,000 of raw materials, paid $1,620,000 of direct labor, generated 420,000 machine ho

> The Office of Management and Budget (OMB) provides access to the budget of the United States government through the Discover U.S. Government Information website at www.govinfo.gov. At this site, you will find a link to the specific collection, the “Budge

> Acme Inc. incurs the following costs during July: Required: Calculate Acme’s total manufacturing costs for July.

> The cost structure of two firms competing in the same industry is represented by the following cost formulas: Company X = $1,350,000 + $37/unit; Company Z = $825,000 + $72/unit. The selling price is $140 per unit for both companies. Required: Calculate t

> Assume MIX Inc. has sales volume of $1,000,000 for two products with June sales and contribution margin ratios as follows: Product A: Sales $500,000; Contribution Margin Ratio 30% Product B: Sales $500,000; Contribution Margin Ratio 60% Required: Assume

> Assume MIX Inc. has sales volume of $1,000,000 for two products with May sales and contribution margin ratios as follows: Product A: Sales $400,000; Contribution Margin Ratio 30% Product B: Sales $600,000; Contribution Margin Ratio 60% Required: Assume

> Refer to the current information for Bay Area Cycle Co. in Mini-Exercise 12.4. Required: Calculate Bay Area Cycle’s breakeven point in units and total sales dollars. Calculate Bay Area Cycle’s margin of safety and margin of safety ratio. Data from Exerc

> Current operating income for Bay Area Cycles Co. is $74,000. Selling price per unit is $120, the contribution margin ratio is 30%, and fixed expense is $250,000. Required: Calculate Bay Area Cycle’s per unit variable expense and contribution margin. How

> Eastern Imports Inc. sold 12,000 units in August. Per unit selling price and variable expense were $30 and $15, respectively. Fixed expense incurred for August totaled $120,000. Required: Prepare the August income statement for Eastern Imports in the con

> During a year, Mark’s monthly sales compensation ranged between $18,000 and $24,000 per month and units sold ranged between 2,000 and 3,000 units for those same months. Required: Use the high–low method to determine Mark’s monthly salary and commission r

> Harris Company experiences the following cost behavior patterns each week: Fixed costs: supervisor’s salary $1,600; factory rent $4,000 Mixed costs: utilities $2,400 + $8.40 per unit Variable costs per unit: manufacturing labor wages $32; supplies used i

> The chair of the Science Department of State University has a budget for laboratory supplies. Supplies have a variable cost behavior pattern that is a function of the number of students enrolled in laboratory courses. For planning purposes, when the budg

> The following information was available for the year ended December 31, 2022: Total assets at year-end 600,000 Total liabilities at year-end 360,000 Required: a. Calculate the debt ratio at December 31, 2022. b. Calculate the debt/equity ratio at Decembe

> The following information was available for the year ended December 31, 2022: Required: a. Calculate the price/earnings ratio for 2022. b. Calculate the dividend payout ratio for 2022. c. Calculate the dividend yield for 2022.

> The following information was available for the year ended December 31, 2022: Sales $400,000 Net Income 64,000 Average total assets 800,000 Average total stockholders’ equity 640,000 Required: a. Calculate margin, turnover, and ROI for the year ended Dec

> The following information was available for the year ended December 31, 2022: Required: a. Calculate the accounts receivable turnover for 2022. b. Calculate the number of days’ sales in accounts receivable for 2022, using year-end accou

> The following information was available for the year ended December 31, 2022: Required: a. Calculate the inventory turnover for 2022. b. Calculate the number of days’ sales in inventory for 2022, using year-end inventories.

> Assume that a company’s current ratio is 3.0, working capital is $300,000, and the acid test ratio is 1.2. a. How much does the company have in current assets? b. If the only current assets shown on the balance sheet are Cash, Accounts Receivable, and Me

> The following amounts were reported on the December 31, 2022, balance sheet: Required: a. Calculate working capital at December 31, 2022. b. Calculate the current ratio at December 31, 2022. c. Calculate the acid-test ratio at December 31, 2022.

> During the fiscal year ended June 30, 2023, Jones Co. had a 4-for-1 stock split. In its annual report for 2023, the company reported earnings per share for the year ended June 30, 2022, on a restated basis, of $1.35. Required: Calculate the originally re

> For the year ended December 31, 2022, Spike Inc. reported earnings per share of $6.30. During 2023, the company had a 3-for-1 stock split. Required: Calculate the 2022 earnings per share that will be reported in Spike’s 2023 annual report for comparative

> Net income was $84,200; accounts receivable increased by $17,600; inventory decreased by $12,100; proceeds from the issuance of common stock were $22,500; accounts payable decreased by $7,400; purchase of land was $51,000; depreciation and amortization e

> The following summarized data (amounts in millions) are taken from the September 26, 2020, and September 28, 2019, comparative financial statements of Apple Inc., a company that designs, manufactures, and markets mobile communication and media devices an

> Net cash provided by operating activities for the year ended December 31, 2022, was $117,300. The cash balance on December 31, 2022, was $66,500. The net decrease in cash for the year was $38,000. Net cash used by financing activities was $48,200. Requir

> Net income was $388,500 for the year. Throughout the year the company had outstanding 5,000 shares of $6.50, $100 par value preferred stock and 80,000 shares of common stock. Required: Calculate basic earnings per share of common stock for the year.

> Selling, general, and administrative expenses were $78,000; net sales were $520,000; interest expense was $11,600; research and development expenses were $61,400; net cash provided by operating activities was $67,300; income tax expense was $17,100; cost

> Net sales for the year were $600,000 and cost of goods sold was $426,000 for the company’s existing products. A new product is presently under development and has an expected selling price of not more than $90 per unit in order to remain competitive with

> Pool Patrol, Inc. offers professional pool cleaning services to residential customers. The company cleans each pool that it services once per month throughout the year. Homeowners are billed for an annual fee payable in advance prior to their anniversary

> On April 10, 2022, Amelia Inc. purchased 1,800 shares of its own common stock in the market for $23 per share. On September 28, 2022, the company sold 700 of these shares in the open market at a price of $26 per share. Required: Use the horizontal model

> Assume that you own 400 shares of common stock of a company, that you have been receiving cash dividends of $5 per share per year, and that the company has a 2-for-1 stock split. Required: a. How many shares of common stock will you own after the stock s

> Assume that an investor owns 1,900 shares of $10 par value common stock and the company has a 5- for-1 stock split when the market price per share is $108. Required: a. How many shares of common stock will the investor own after the stock split? b. What

> Bill & Lisa Ltd. did not pay dividends on its 6.5%, $100 par value cumulative preferred stock during 2021 or 2022. Since 2015, 275,000 shares of this stock have been outstanding. Bill & Lisa Ltd. Has been profitable in 2023 and is considering a cash divi

> Altuve Co. was incorporated on January 1, 2022, at which time 250,000 shares of $1 par value common stock were authorized, and 110,000 of these shares were issued for $17 per share. Net income for the year ended December 31, 2022, was $1,500,000. Altuve

> You were asked to obtain a recent annual report of a company that you were interested in reviewing throughout this term. Required: a. Please locate the five-year (or longer) selected financial data (usually in the management discussion and analysis secti

> The balance sheet caption for common stock is the following: Required: a. Calculate the dollar amount that will be presented opposite this caption. b. Calculate the total amount of a cash dividend of $0.50 per share. c. What accounts for the difference b

> On July 1, 2022, $60 million face amount of 7%, 10-year bonds were issued. The bonds pay interest on an annual basis on June 30 each year. The market interest rates were slightly higher than 7% when the bonds were sold. Required: a. How much interest wil

> Vicki Co. issued $1 million face amount of 8%, 20-year bonds on April 1, 2022. The bonds pay interest on an annual basis on December 31 each year. Required: a. Assume that market interest rates were slightly lower than 8% when the bonds were sold. Would

> The balance of the Estimated Warranty Liability account was $25,000 on January 1, 2022, and $34,400 on December 31, 2022. Based on an analysis of warranty claims during the past several years, this year’s warranty provision was established at 1.5% of sal

> For the payroll period ended on May 28, 2022, gross pay was $119,000, net pay was $91,000, FICA tax withholdings were $7,000, income tax withholdings were $17,000, and medical insurance contributions were $4,000. Required: Use the horizontal model (or wr

> On December 1, 2022, an advance rent payment of $25,800, representing a three-month prepayment for the months of December, January, and February, was received in cash from the company’s tenant. Required: Use the horizontal model (or write the journal ent

> On December 1, 2022, Hocking Inc. obtained a four-month working capital loan from its bank. The face amount of the note signed by the treasurer was $100,000. The interest rate charged by the bank was 6%. The bank made the loan on a discount basis. Requir

> Congratulations! You have just won $2 billion in the largest Powerball jackpot payoff ever! You will receive payments of $100,000,000 per year for the next 20 years. Required: Using a present value table, your calculator, or a computer program present va

> Backstreets Co. recently acquired all of Jungleland Inc.’s net assets in a business acquisition. The cash purchase price was $9.4 million. Jungleland’s assets and liabilities had the following appraised values immediately prior to the acquisition: land,

> Creations Unlimited purchased camera equipment for its photo studio on January 6, 2022, at a cost of $17,000. The equipment had a four-year useful life and an estimated salvage value of $3,000. The equipment was depreciated for two full years on a straig

> At the beginning of the year, the net assets of Shannon Co. were $492,600. The only transactions affecting stockholders’ equity during the year were net income of $70,200 and dividends of $15,400. Required: Calculate Shannon Co.’s return on equity (ROE)

> Assume that Gandolfi Construction Co. calculated depreciation expense for the CAT 336DL earth mover on the straight-line method and reported $950,000 of net income for the year ended December 31, 2022. The company’s average total assets for 2022 were $10

> Gandolfi Construction Co. purchased a CAT 336DL earth mover at a cost of $1,200,000 in January 2022. The company’s estimated useful life of this heavy equipment is 10 years, and the estimated salvage value is $300,000. Required: a. Using straight-line de

> Stucki Holdings Corp. incurred the following expenditures: $5,700 cost to replace the transmission in a company-owned vehicle; $19,300 cost of annual property insurance on the company’s production facilities; $15,100 cost to develop and register a design

> Fesco Jewelers Ltd. Purchased store fixtures, display cases, and a maximum-security commercial safe for a lump-sum price of $18,000 from a bankrupt competitor. Appraised values were as follows: store fixtures, $9,000; display cases, $13,500; commercial s

> In 2019, Trader Co. acquired a parcel of land for a cash purchase price of $175,000 with the intention of building a retail store in the near future. In late 2020, in the midst of the COVID-19 crisis, Trader Co. was unable to secure the bank financing re

> On September 1, 2022, a commercial tenant paid its landlord $18,000 in cash as an advance rent payment on its store location. The six-month lease period ends on February 28, 2023, at which time the contract may be renewed. Required: a. Use the horizontal

> a. Use the horizontal model or write the journal entry to record the payment of a one-year insurance premium of $9,000 on May 1, 2022. b. Use the horizontal model or write the adjusting entry that will be made at the end of every month to show the amount

> The beginning inventory was 900 units at a cost of $10 per unit. Goods available for sale during the year were 3,900 units at a total cost of $43,200. In May, 1,800 units were purchased at a total cost of $19,800. The only other purchase transaction occu

> Sales during the year were 500 units. Beginning inventory was 400 units at a cost of $6 per unit. Purchase 1 was 200 units at $7 per unit. Purchase 2 was 100 units at $8 per unit. Required: Calculate cost of goods sold and ending inventory under the foll

> The Allowance for Bad Debts account had a balance of $19,200 at the beginning of the year and $24,400 at the end of the year. During the year (including the year-end adjustment), bad debts expense of $36,600 was recognized. Required: Calculate the total

> At the beginning of the year, accounts receivable were $30,000 and the allowance for bad debts was $1,500. During the year, sales (all on account) were $100,000, cash collections were $94,000, bad debts expense totaled $2,000, and $1,000 of accounts rece

> a. Firm D has net income of $54,000, sales of $1,200,000, and average total assets of $750,000. Calculate the firm’s margin, turnover, and ROI. b. Firm E has net income of $132,000, sales of $2,200,000, and ROI of 9.6%. Calculate the firm’s turnover and

> Refer to Mini-Exercise 5.1. Required: a. Show the reconciling items in a horizontal model, or write the adjusting journal entry (or entries) that should be prepared to reflect the reconciling items for Happ Inc. at August 31. b. What is the amount of cas

> The balance in Happ Inc.’s general ledger Cash account was $16,200 at August 31, before reconciliation. The August 31 balance shown in the bank statement was $14,900. Reconciling items included deposits in transit, $2,100; bank service charges, $100; NSF

> a. The Supplies account had a balance of $2,400 at the beginning of the month and $3,200 at the end of the month. The cost of supplies purchased during the month was $7,800. Calculate the cost of supplies used during the month. b. Wages Payable had a bal

> a. Accounts Payable had a balance of $15,000 at the beginning of the month and $21,400 at the end of the month. During the month, purchases on account amounted to $34,600. Calculate the payments to suppliers during the month. b. Accounts Receivable had a

> The transactions and adjustments related to the second month of operations of Zoe Amelia Corp. were as follows: a. Paid wages that had been accrued at the end of the prior month. b. Collected accounts receivable from sales recorded in the prior month. c.